Funding deal paves way for heat pump production facility
Domestic heat efficiency specialist Ventive has secured a £2.5m finance package to help deliver its modular heat pump production facility in Hartlebury, Worcestershire.
Ventive’s modular exhaust air heat pumps are targeted at both new build and retrofit applications and aim to provide significant cost and carbon dioxide emissions reductions across their installation, operation and production.
EMV Capital, the deeptech and venture capital specialist, a subsidiary of NetScientific plc, the international life sciences and sustainable technology investment and commercialisation group, led the financing.
The deal syndicated by EMV Capital is an investment package which includes an initial equity and debt investment of £600,000 from new investors.
EMV Capital has taken a c.16% direct stake in the business, in partial settlement of fees. The package also includes the restructuring of around £1m of historical debt.
The fresh cash enables the launch of a Department for Business, Energy & Industrial Strategy (BEIS) matched funding grant of £1.5m, in line with EMV Capital’s capital light investment approach.
Ventive has partnered with QM Systems, a subsidiary of AIM-quoted PipeHawk PLC, to setup and scale-up its production to meet growing market demands.
QM Systems offers multi-disciplinary production design, automation and high value manufacturing services backed by years of engineering experience.
Rob Morrison, managing director of Ventive, said: “The demand for more efficient domestic heating solutions has never been greater. This need has been compounded by the threat of climate change, and the current cost of living crisis which has sent energy bills soaring.”
“We are delighted with the support provided by EMV Capital that helps to strengthen Ventive’s balance sheet, and provides us with the funding needed to accelerate the launch of our efficient and cost-reducing heat pump division, and equally importantly, with an experienced team of active investors who have significant industry expertise.”
Ed Hooper, EMV Capital director, and the newly appointed investment director at Ventive, added: “EMV Capital is very pleased to welcome Ventive into our growing investment portfolio. Ventive’s intelligent building service systems, which seek to dramatically reduce carbon emissions for homes, fit well with our focus on deeptech, and sustainability companies with an ESG impact.
“I look forward to working closely with Ventive’s management team, and the company’s project partners, and driving value for investors.”
